Crude oil benchmarks Brent and WTI slipped below $70 per bbl mark on Friday hitting their five month lows after Trump tariff scare dampened sentiments in the commodity markets, causing widespread sell-off.
Brent crude futures were trading at $69.98 per bblm falling by $4.97 or 6.63% in the day's trade while WTI contracts sinked over 7% on Comex to hit levels of $66.55, a correction of $5.16 per bbl.
"Crude oil fell substantially on Thursday following President Trump's announcement of reciprocal tariffs on major trading partners. WTI crude oil has dropped below $68.50. The announcement increased fears of a worldwide trade war, which might harm global economic development. There were concerns that slower growth would reduce demand for crude oil," Anuj Gupta, Head Commodity & Currency at HDFC Securities said.
Taking cues from global oil prices, crude oil April contracts on the MCX fell nearly 8% or by Rs 472 per bbl and traded at Rs 5,675 around 8:30 pm.
Trump announced a minimum tariff of 10% on imports from all countries, with the tax rate running much higher on products from certain countries like China and those from the European Union.
It’s “plausible” the tariffs altogether, which would rival levels unseen in roughly a century, could knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5%, said UBS in a note. Such a hit would be so frightening that it “makes one’s rational mind regard the possibility of them sticking as low,” according to Bhanu Baweja and other strategists at UBS.
Bullion too met the same fate as silver prices were lower by 6.5% on Comex and traded at $32.405 per troy ounce while Gold lost its safe haven appeal and dipped 0.44% to trade at $3,152.20 per troy ounce. Base metal like copper was down 3.5% on the Comex.
The situation was not different in equity markets as well. Wall Street opened with massive cuts on Thursday as Dow fell by over 1,200 points in the early trade weighed down by fears of US slowdown in the wake of President Donald Trump's reciprocal tariffs that came into effect on Wednesday. The fall was led by stalwarts like Apple, NVIDIA, Amazon, Nike and Goldman Sachs which fell up to 12% in the intraday trade.
Also Read: Dow plummets 1,500 points, Nasdaq down 4%, S&P 3% as Trump tariffs trigger recession fears
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Brent crude futures were trading at $69.98 per bblm falling by $4.97 or 6.63% in the day's trade while WTI contracts sinked over 7% on Comex to hit levels of $66.55, a correction of $5.16 per bbl.
"Crude oil fell substantially on Thursday following President Trump's announcement of reciprocal tariffs on major trading partners. WTI crude oil has dropped below $68.50. The announcement increased fears of a worldwide trade war, which might harm global economic development. There were concerns that slower growth would reduce demand for crude oil," Anuj Gupta, Head Commodity & Currency at HDFC Securities said.
Taking cues from global oil prices, crude oil April contracts on the MCX fell nearly 8% or by Rs 472 per bbl and traded at Rs 5,675 around 8:30 pm.
Trump announced a minimum tariff of 10% on imports from all countries, with the tax rate running much higher on products from certain countries like China and those from the European Union.
It’s “plausible” the tariffs altogether, which would rival levels unseen in roughly a century, could knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5%, said UBS in a note. Such a hit would be so frightening that it “makes one’s rational mind regard the possibility of them sticking as low,” according to Bhanu Baweja and other strategists at UBS.
Bullion too met the same fate as silver prices were lower by 6.5% on Comex and traded at $32.405 per troy ounce while Gold lost its safe haven appeal and dipped 0.44% to trade at $3,152.20 per troy ounce. Base metal like copper was down 3.5% on the Comex.
The situation was not different in equity markets as well. Wall Street opened with massive cuts on Thursday as Dow fell by over 1,200 points in the early trade weighed down by fears of US slowdown in the wake of President Donald Trump's reciprocal tariffs that came into effect on Wednesday. The fall was led by stalwarts like Apple, NVIDIA, Amazon, Nike and Goldman Sachs which fell up to 12% in the intraday trade.
Also Read: Dow plummets 1,500 points, Nasdaq down 4%, S&P 3% as Trump tariffs trigger recession fears
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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